Markets Overview: (Source: Bloomberg, FT, Reuters, DJ Newswires

UK Index called to open + 15 points, as Asian markets overnight broke their losing streak of five days, in anticipation of the ECB’s announcement due later today – expected to reveal a bond buying plan to help distressed nations with borrowing costs (will there be an added surprise?).  President Draghi has underlined his stance as “defender of the euro”, and today is viewed by many to be tantamount to maintaining his credibility – make note of the 1.30pm press conference which is 45 minutes after the interest-rate decision, as last month saw exceptionally volatile movements in the index and fx space.

 In Commodities Gold has broken through the $1,700 level (currently at $1,703) for the first time in six months as Equity markets look a little nervous over the past couple of days. In Oil, US Light Crude edged higher to trade at $96.35 a barrel (a $1 off week highs). In FX, the Euro gained some ground against the Dollar on strong hopes that the European Central Bank will announce measures to combat the Eurozone financial crisis. EUR vs USD currently at 1.26 whilst GBP vs USD is at 1.59.

In today’s macro line-up, watch out for Eurozone inflation and unemployment. Inflation too high could limit ECB’s scope for further rate cuts should they wish to help the economy along. A bigger than expected rise in unemployment could confirm a worsening economic situation, especially with weak GDP figures of late. In the afternoon, US data likely overshadowed by Bernanke’s speech at 3pm, a bit like the world stopping for US Non-Farm payrolls on the first Friday of every month.

In today’s macro line-up, beyond the ECB announcement, keep an eye out on the ADP Employment Change figure from the US at 1.15pm.  This estimates change in numbers of people employed in America, for the private-sector only, and is conducted by a private company- expectations are 143k (drop from 163k previous month).  This is often seen as a precursor for the all-important US Non-Farm Payrolls figure tomorrow, which is published by the US Department of Labour.

As always, have a chat with your friendly trader for anything other information you require.

Overnight Macro Data: (Source: Reuters/DJ Newswires)

• AUSSIE             Employment Change              WORSE
• JAPAN              Tokyo Office Vacancies          IN-LINE
• FRANCE           Unemployment Rate               IN-LINE

See Live Macro calendar for all details

UK Company Headlines: (Source: Reuters/DJ Newswires)

• Carclo says smartphone order put on hold
• Lonmin, unions sign S. Africa mine peace deal
• Balfour Beatty selected for Magnox nuclear contract
• Gazprom‘s Q1 net profit at 357.8 bln rbls, beats fcast
• Next Fifteen sees year profits in line
• Baydonhill to cancel AIM listing
• Morrisons profit rises in tough market
• Lamprell sets up JV to expand operations in Saudi
• Dixons CEO says happy with full-year forecasts
• Abcam FY profit up 21 pct
• Whitbread Q2 like-for-like sales grow 4.2 pct

———————————————————————————————–

• 10:00                    GERMAN             Factory Orders
• 11:00                     UK                          Bank of England Rate Decision
• 11:30                     US                          Challenger Job Cuts
• 11:45                     EU                          European Rate Decision
• 12:30                     US                          Initial Jobless Claims
• 15:00                     US                          Crude Inventories

 See Live Macro Calendar for all data, incl. consensus expectations